What are the potential use cases for generative AI (GenAI) in banking and financial services? What are the risks and opportunities? And can GenAI tools be implemented within the existing risk management frameworks that banks have long used with AI tools? Or do more comprehensive risk management frameworks need to be built and tested?

These are questions that the American Bankers Association tackled in a letter published Monday, which included input from 21 state banking associations. Also published Monday, an IBM report titled, “Integrating Gen AI into the Financial Regulatory Framework,” addressed these same questions in the financial services industry. The ABA letter and IBM report each attempt to describe potential future uses of GenAI tools in finance.

The ABA letter was addressed to the Treasury Department in response to a June 6 Request for Information from the agency seeking input on uses, opportunities, and risks of AI in the financial services sector.